"Death Watch" Stocks
Penny Stocks Today
- NICK TEST
- How to Spot the Best Stocks to Buy in Tech's Fastest-Growing Sector
- Senators Move to Create 21st Century Glass-Steagall Act
- Today's Fed Meeting and Gold Prices
- The Real China Story: It's What Premier Wen Didn't Say That Matters
- Is It Time to Buy These
"Death Watch" Stocks?
The purchase price was a rather steep $2.7 billion. That's $76 per share - a handsome 29% premium to the around $49 share price early Monday, before the deal was announced. Shares of FIRE are now trading at just under $76 a share.
If you're looking for stocks to buy, these shares have probably had enough fun for one night, but they may have found a decent support level.
Sourcefire has spurned suitors before, and dallied with its fair share of M&A activity - turning down a buy offer from Barracuda Networks, while acquiring antivirus companies Immunet and Clam AntiVirus in the last decade
An Ever More Urgent NeedAttacks on computer networks are, without exaggeration, ceaseless. There is at least one ongoing attack somewhere in the world at any given time. Sourcefire is one of many network security firms filling an increasingly vital niche.
Sourcefire's flagship product, FirePOWER, which is based on the open-source Snort intrusion detection system, is acknowledged to be among the best in the industry.
Snort itself is said to be the most widely deployed IDP technology on earth. One of the more interesting products is their Advanced Malware Protection, which analyzes malware attacks and works to predict and prevent even the very worst attacks.
It's this kind of killer, boutique technology that makes companies like Sourcefire so attractive to the big boys.
Warren, John McCain (R-Ariz.), Maria Cantwell (D-Wash.), and Angus Kin (I-Maine) introduced legislation that would again separate bank's traditional activities (like deposits currently backed by the Federal Deposit Insurance Corp.) from riskier activities like investment banking, insurance underwriting, swap dealing, and hedge funds.
Glass-Steagall was repealed by Congress back in 1999.
When the news broke of Warren’s determined attempt to bring back Glass-Steagall last week, it covered front pages across the country and instigated a firestorm of commentary on the future of the U.S. economy.
The problem, of course, is the ability to cut through the hype and understand if financial reform is necessary to fix the U.S. economy.
Rarely do I find myself championing regulatory efforts by the Federal Government, but the financial sector is an entirely different beast from energy, agriculture, and other resource sectors.
But reinstituting key elements of the Glass-Steagall Act is just one step on a long return to sanity for the economy.
Over the last several years, the move in gold prices have been more and more in sync with market perceptions of what actions will be taken by the world's major central banks.
For example, today's Fed meeting and its anticipated outcome has kept gold prices under pressure lately, with gold on Tuesday falling 1.2%.
The past few years has seen the Federal Reserve, European Central Bank and, most recently, the Bank of Japan flood the world's financial markets with money through bond purchases and other operations.
As this occurred, the price of gold floated higher on the sea of liquidity.
Gold soared 70% from the end of December 2008 to June 2011 through the first two rounds of QE (quantitative easing). Then after the announcement of the launch of QE3 last September, gold climbed to over $1,770 an ounce on the back of the Fed announcing open-ended purchases of bonds.
But this isn't the bombshell most Western analysts think it is-even though the markets sold off on the day and may continue their temper tantrum later this week.
It's actually what Premier Wen didn't say that really matters. As is so often the case in China, it's what goes on behind the scene that is far more interesting - and actionable.
In that sense, Premier Wen's comments aren't really news at all, but rather recognition of the symbolic priorities attached to Chinese growth.
As I have talked about at length in the past, China needs to do three things this year: 1) keep growth in line, 2) promote monetary stability and 3) be flexible with regard to inflation.
What makes Wen's 7.5% GDP figure significant is that in dropping it by half a percent, Premier Wen is not saying, but, in fact, telegraphing two things:
- China's domestic growth priorities have now trumped growth through exports and manufacturing in terms of relative importance; and,
- The Communist Party expects to shift spending to lower brow projects like ordinary train lines, rural roads, education and technical infrastructure.
This stands in stark contrast to our own politicians who frequently write checks with their mouths that they can't possibly cash.
Understanding the China Story
No. China's leaders are acutely aware of "face" and the risks of losing it. So it's what hasn't been said that's actually far more important here.
The real message is that China expects to maintain growth above 6%, the internal Party Elite's real target, and continue to develop employment opportunities that will keep its 1.3 billion people fed, clothed and housed - so they don't revolt.
Never mind Iran's "Red Line." This is the one that matters.
Understand the importance of 6% and you will understand China in a way that Washington doesn't.
Exports, imports, the yuan, the ghost cities, and hard landings...
None of these things hold a candle to what Beijing considers its most important issue--ensuring China's own survival.
Varney asked Fitz-Gerald if any of these companies presented a buy-when-it's-cheap opportunity, or if investors should steer clear.
First, Eastman Kodak Co.
The photo company is rumored to be preparing to declare bankruptcy if a plan to sell digital patents doesn't materialize over the next few weeks. The company has plunged a staggering 98% in the past five years, bringing its market cap to a measly $170 million.
"It's hard to believe this company is in danger of delisting and has become a microcap stock," said Fitz-Gerald.
Fitz-Gerald said as an investment this company should be avoided, but did not discount some day-trading opportunities for aggressive traders.
"Of these stocks, this is the one that intrigues me if I want to take a flyer - not an investment, but a flyer. The potential winner if you are a trader here is the patent lawsuit against Apple and Research in Motion."
Kodak initiated a suit against Apple Inc. (Nasdaq: AAPL) and Research in Motion Ltd. (Nasdaq: RIMM) in 2010 claiming patent infringement on imaging technology.
"But my concern is the judge has put off an opinion until September 2012; Kodak may not have the cash to survive until then," said Fitz-Gerald.
Next up, Sears Holding Corp. (Nasdaq: SHLD). ......